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Home My WebLink About10/13/2026 09.A. 2027-2028 Biennial Budget Presentation Cr17:;11t— -1.:4) F�,t't:OR"R r}:.ks- BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9.A. For Meeting of: October 13, 2026 ITEM TITLE: 2027-2028 Biennial Budget Presentation SUBMITTED BY: Vicki Baker, City Manager Craig Warner, Director of Finance and Budget SUMMARY EXPLANATION: City staff will present an overview of the proposed 2027-2028 Biennial Budget, including preliminary revenues and expenditures, key funding priorities, and significant changes from the current budget. The presentation is intended to provide Council with an overview of the City's financial plan for the upcoming biennium and support the budget review and adoption process. ITEM BUDGETED: N/A STRATEGIC PRIORITY 24-25: A Resilient Yakima RECOMMENDATION: No action necessary. ATTACHMENTS: 2027-2028_Preliminary_Budget_Presentation_10-13-26_-_10.8.26.pdf 82 ----- l'4_7-' . ••••::,',,, • . . perentiliali "WI ' • • 1 aniamanlinr, limmilimine -1 malainnna ,-''firilnInninin "wanting -.„_, .1 I,,, mum • 2027-2028 Ann Ann r --%3A-44%-qb. NI i_ i tr-i-i--I-T:1 I . . * \I- ; - lir • ,.._''' e: p_ 0- 1 i<1 — — — — --- Preliminary • Teamwork '---- cz) o f- -, m _ .....--• ealw . , 7.---1H-44-": Biennial Budget 4IZ) MINI IMO 1 , agr 20% _,1111,1a .o.....7.:/-1.., -Or glIp ii, • a 45% 35% a • aim City Council Regular Meeting October 13, 2026 • ____ -- — ..__41 83 -,Re.ar - ' s wc� i , y 4sy�'.� •,�2 2027/2028 Budget ,,,,,,,,,,,,,,,,,,,,,,,, We have a Balanced Budget ! Path forward or included in the 2027/2028 Budget • Lions Pool • Harman Center • WA Fruit Center • Park Bathrooms • Fire Station 92 • Other Items 84 Page 2 J ., -.:.� i41 4.4r1111& % %4C- :�IAllCityFunds City Funds !___-- li Governmental Proprietary Fiduciary General Fund General Fund Enterprise Purpose (examples): Utility Tax Special Revenue— restricted externally Sales Tax (Streets, Convention Center) Property Tax Capital—for all non-proprietary capital Special Internal Debt—for all non-proprietary debt Revenue Service Enterprise — business-like with external customers Capital Internal Service— internal customers Fiduciary Debt - not our money (Cemetery Trust) 85 What is in the City of Y akima/s GENERAL FUND? i .... r — •,-.AI:1 ' 4'' -'"i ''' ''. . ' -- .. (81 t ., , . POLICE loUCE ,e—' . -1- . 43 o'--". .4,411,-. .4.-• _ . lie • - ' 1111 . : - Plit : 041 • ,1111 Ala"I''Y IN:a:mil - ' '4F4A4R. ....... . A' A ii. FACILITIES MANAGEMENT , :,` . .'.7'ita.,• •. i.- _. _ , • . i_ 4IL077- .00.0 4 , - - . ' PO'._!',.:: D,:P. T,VENT•:-..•TY A*TOI•-IN:Y e IA.• )..... A II . FINANCIAL_PL-AN - RECRIE1Iitil ,, _ • !,:,,,,>. z-,„,sKILL E:1 ABILITY II o,.; SOL,T'' .r.r - .-- -- II . PIIMPiliwo• - t / :Alt4IN '1111ANIAuGiE7MENTES711.46CE, ,...., . . -. _...,.., . • AN. 4 a ••— - ana •---- 1 .• I) ..... a 86 Page 4 What services are NOT in the ____. GENERAL FUND . r ~ _ril....... .,\ , 4.. 1. dahi )b- �R a.�� e. �. _ � t -._ ' -lam '\ %ill • - -.,L — a 1 mil gyp• r , J - - - �. ,� R - - "s• ;Alm -"T—1 — . _ F Ly y FLYYIAM - T k. Jii \ :,..:■! _' Social Services _ 87 Page 5 `Y,.... As presented J �� Jl'.:412025/2026 General Fund Forecast ,,�:.� • �� in 2024 y . tr General Fund - 001, 003, 612 with Transfers - Including Revenue Loss Replacement �'y,4n;.''.... sum/ RP„RATED 2024 2025 2026 YE Est Projected Projected Beginning Balance $ 13,197,529 $ 18,328,640 $ 11,476,129 Revenues Sales Tax 29,023,265 30,368,000 31,635,000 Utility&Franchise Taxes 21,551,207 21,729,567 22,204,342 Property Tax 8,807,406 8,985,965 9,119,285 Charges for Services 3,374,899 3,318,674 3,392,037 Intergovernmental Revenues 5,522,191 2,780,966 2,812,858 Other Taxes&Assessments 1,334,458 1,457,000 1,440,000 Licenses and Permits 1,723,150 1,810,750 1,835,750 Fines&Forf,Transfers,Misc 5,906,269 4,327,808 4,339,808 Total Revenues 77,242,845 74,778,730 76,779,080 Expenditures Salaries&Wages 44,032,906 47,244,977 49,958,741 Personnel Benefits 16,839,598 18,181,332 18,859,133 Supplies-Cons&Resale 2,133,165 2,247,037 2,261,637 Services&Payments 2,561,889 11,361,732 11,720,933 Capital Outlays 934,067 146,000 146,000 Debt Service 166,852 153,978 154,663 Transfers 5,443,257 2,296,185 2,324,473 Total Expenditures 72,111,734 81,631,241 85,425,580 Est End Fund Balance $ 18,328,640 $ 11,476,129 $ 2,829,629 Policy Rsv Amt-16.7% $ 12,042,660 $ 13,632,417 $ 14,266,072 Net Fund Balance $ 6,285,980 $ (2,156,288) $ 11,436,4431 88 _ 1l rrr r�;. As presented �� . 2025 General Fund '�� _ � in 2024 REVENUES BY SOURCE EXPENDITURES BY CATEGORY $741778,730 $811631,241 Deficit: $(6,852,511) Utility&Franchise Taxes 29.1% Ilk Salaries Sr Wages 57.9% Sales Tax 40.6% Personnel Benefits Property:::ices Tnsfers 'SuppliesTransfers, a 2 8% Consumption& Misc j 4.4/° Debt Service& I Resale 5 8% Services Sr Pass- 2,7q0 Licenses and Other Taxes Intergovernmental Capital Outlays Through Payments Permits Assessments Revenues 0.4% Through 2.4% 2.0% 3.7% 89 _ 1l rrr rr rc;. As presented �� 2026 General Fund '�� _ � i n 2024 REVENUES BY SOURCE EXPENDITURES BY CATEGORY $76,779,080 $85,425,580 Deficit: $(8,646,500) Salaries&Wages 58.5% Utility&Franchise Taxes 28.9% limi Sales Tax 41.2% Transfers 2.7% Proper11 ty Tax Debt Service& 9% Capital Outlays 0.4% Fines&Forf,Transfers, Charges for Services Misc & 4.4% Services&Pass- 5.6% Intergovernmental Through Payments Personnel Benefits Licenses and Other Taxes Revenues 13.7% 22.1% Permits Assessments Supplies for 2.4% 1.9% 3.7% Consumption& Resale 90 `-;..Y ,JJ� � 2025 2026 General Fund As presented —4 • )1S1 r RP......,` Ending Fund Balance vs Policy Reserve in 2024 IIIIII (Fund 001 Only-With Transfers) �Vilh ARPA Revenue Replacement $30,O�M�,UI Ill $20,000,000 41., S10.Ooo,000 _ • • • • •\t 3 144:1 w ($10,000,000) J ($20,000,ao0) •/ '' . ,,, ($30,000,0001 (E40,000,000/ ($50,000,000) 2023 2024 2025 2026 2027 202E 2029 Actual 1E Est Budget Budget Projected Projected Projected GF End Balance t Policy Rsv Amt-16.7% 91 J „„ 1,4„ ,,. ..4„ripi.......,,,,, ,....., ‘4,..,,,,! :,, , How did we get there? _„. ____ , ",...:,.,-,7"w:::---/ • Structural Issues: — Property Tax 1% reducing levy rate - $200,000 per year — Not keeping up with cost of inflation — One-time Federal Covid money helped through the pandemic, but funds were obligated and exhausted — Cities across the state grappling with this issue, passing levies, raising rates — Increased population and demand for services from 65,000 people to 100,000 — Several City Managers have made cuts over the last 20 years • Carry forward deficit of $8.5M from 2023, temporary measures in 2024 — Started with a negative trajectory as costs rise rapidly — Cuts made in 2023 were mainly to support services and not the main cost drivers, problem pushed to 2025-26 budget 16 92 Page 10 r -‘'''''' ,,,,, �� ,,-„,.. ,,,, �:y �• , $3.0 Million in Budget Reductions ARP<)RATEI) Additional Additional Department Description Budget Department Description Budget CM Fireworks $ 15,000 Parks Lion's Pool Reduction $ 50,000 CM Windows Alive $ 10,000 Parks Franklin Pool Closure $ 167,000 CM Downtown Flowers $ 44,300 Parks Youth Sports Programs $ 61,000 CM AWC Membership $ 77,417 Parks Cemetery Domestic Water $ 15,000 Clean City Graffiti Removal $ 72,500 Parks Day Camps $ 170,000 Codes 2 Enforcement Officers $ 171,000 Parks Adult Sports $ 36,917 Council Lobbying& Council Travel $ 120,000 Parks Community Recreation $ 50,000 ED YCDA-50% Reduction $ 25,000 Police CSO Positions $ 150,000 ED ED Staff $ 162,104 Police Crime Free Rental Housing $ 82,000 ED Main Street Match $ 50,000 Police Corrections Admin Specialist $ 111,948 Facilities Facilities Specialist $ 74,056 Streets Ally Maintenance $ 30,000 Finance Operations/Staffing Adjust $ 150,000 Streets Sidewalk Improvements $ 105,000 Fire Electronics Position $ 90,269 Streets Street Maintenance Funding $ 410,000 HR Staffing Adjustments $ 60,000 Streets Snow& Ice Removal $ 250,000 Legal Legal Assistant $ 80,000 Trolley Trolley Maintenance $ 10,000 Parks Harman Center Reduction $ 50,000 Parks WA Fruit CC Reduction $ 50,000 $ 3,000,511 93 11 . 9,7 m__ 11;ti� J e Oty ofYddma Proposition No. 1 Levy Request Choice Party By Mail Yes 6,723 48,68% No 7,087 51.32% • $.50 per $1,000 would Cast Votes: 13,810 100,00% generate $6.0 million Undervotes: 497 Ovenrotes: 3 Undeclared wnte•in votes: 0 • No additional cuts would be required 94 Page 12 J .. Ar111h. . • r4,1 S l ''',.4,�,,�`r! :== Additional $6.0 Million in Budget Reductions RP0R A..,) Police ill $3 Million $6 Million CSO Positions $ 150,000 $ 135,000 Crime Free Rental Housing $ 82,000 Corrections Admin Specialist $ 111,948 12 Police Officers $ 2,000,000 1 Police Sergeant $ 200,000 1 Analyst Supervisor $ 154,000 2 Analysts $ 240,000 1 CSO moved to Criminal Justice $ 94,000 Reduce Humane Society $ 50,000 $343,948 $ 2,873,000 110116-, Total Reductions $3,216,948 95 Page 13 J .. J 1 '...... . .1'4 ._ 7y %,��,,�`r! :=` Additional $6.0 Million in Budget Reductions Parks ill $3 Million $6 Million Harman Center $ 50,000 $ 332,000 WA Fruit Center $ 50,000 $ 219,591 Franklin Pool $ 167,000 Lion's Pool $ 479,000 Youth Sports Programs $ 61,000 Summer Day Camps $ 170,000 Adult Sports $ 36,917 Community Recreation $ 50,000 Parks Bathrooms $ 150,000 Parks Maintenance $ 230,000 10111116' $599,917 $ 1,410,591 Total Reductions $2,010,508 96 Page 14 J sC: 0 ,,, ? ._ 4101111bk Sl°,iCr:l 2' �'''o ;,�`r! : Additional $6.0 Million in Budget Reductions RPOR A..1) Fire ill $3 Million y $6 Million Close Station 92 $ 1,800,000 $0 $ 1,800,000 Total Reductions $1,800,000 97 rJ �� s,, • '-4 Harman Center $225,000 ,��`v° Washington Fruit Center $300,000 "" Lion's Pool (Plus $150K donations) $230,000 Franklin Pool (Operations and Capital) $170,000 Council Approved Parks Bathrooms $141,920 Impact Fee Consultant $100,000 Reserve Fire Station #92 $1,200,000 AlI ocati o n s for Indigent Defense $250,000 2026 IT Firewall/Server $295,000 Leave Liability $400,000 Designations: Snow& Ice/HR $350,000 2025 PO's/Probation/Police OT/Natural $370,953 Gas/Misc Total $4,032,873 IFPage 16 98 General Fund Reserve Balance ,,,,,,,,,,,,,,,,,,,,,,,,, 2023 Actual 2024 Actual 2025 Actual 2025 Budget Beginning Fund $10,845,338 $11,590,609 $16,998,756 $16,998,756 Balance Revenues $88,400,411 $89,476,135 $93,922,142 $91,038,634 Expenses $(87,655,140) $(84,067,988) $(92,829,996) $(97,176,226) Ending Fund Balance $11,590,609 $16,998,756 $18,090,902 $10,861,164 99 Page 17 4::" . ,\ General Fund Funded • rj a,, ;,�tvy Washington Fruit Center $100,000 RPOR;" (Grants/Donations support) 2027/2028 Lion's Pool $350,000 Fire Station 92 $1,800,000 Budget for Other Funding Council Approved Harman Center Contracted Service Reserve Parks Bathrooms/Graffiti Clean City Allocations for Not Funded 2026 Franklin Pool $150,000 Leave Liability $400,000 lir MI 100 Page 18 �� s�: ? t r.;•:Y 1.• Structural Changes ''''''''''''''''''''''''' Fund Changes • Consolidated the Criminal Justice 3/10th's Sales Tax fund into the General Fund • Consolidated the Communications Public Safety fund into the Dispatch Fund • Removed ARPA Fund • Moved the Community Relations Fund into the General Fund • Established a Technology Fund and eliminated IT as a GF department • Eliminated two capital improvement funds with closed/completed projects Revenues • Removed $20 Car Tab fee and replaced it with a 0.1 % Sales Tax — TBD • Instituted a 3% Utility Tax to fund Fire Station 92 16 • Approved a 1 % Utility Tax to fund Police community services positions 101 Page 19 ,,,... �•�= General Fund 1-4%, �; v�•= GENERAL FUND 5-YEAR FORECAST '1,�4C4RPnRATEU `9� (with transfers) 2025 2026 2027 2028 2029 2030 2031 Actual YE Estimate Budget Budget Forecast Forecast Forecast Beginning Balance $16,098,756 $18,090,902 $15,594,568 $15,245,714 $ 14,326,971 $ 13,286,361 $12,740,743 Revenues Sales Tax 28,194,415 28,925,058 29,844,000 30,849,000 32,082,960 33,565,278 34,700,930 1 Utility Tax 24,029,737 25,856,662 27,489,786 28,141,094 28,985,327 29,854,887 30,750,584 Property Tax 8,405,744 22,351,200 22,900,001 23,856,643 24,088,372 24,781,153 25,524,889 Charges for Services 3,581,166 1,335,406 1,400,800 1,400,650 1,445,700 1,489,010 1,531,621 Intergovernmental 3,274,876 3,842,883 2,920,986 2,444,915 2,518,256 2,598,814 2,671,628 Other Taxes 1,363,418 1,436,415 1,388,000 1,385,000 1,429,600 1,472,529 1,516,705 Licenses&Permits 2,582,340 2,128,735 2,134,550 2,114,550 2,177,687 2,248,326 2,310,626 Operating Contributions&Misc. 2,111,876 2,038,894 1,660,550 1,672,550 1,722,727 1,774,408 1,827,641 Transfers - 309,772 64,056 32,010 32,891 33,860 34,939 Investment Interest/Amortization 6,395,738 4,725,984 4,804,384 4.801,115 4,945,148 5,095,803 5.246,809 Total Revenues 79,909,311 92,950,959 94,607,656 96,203,501 99,395,026 102,700,869 106,115,588 Expenditures Salaries&Wages 44,658,479 47,580,469 46,579,593 48,888,237 50,805,766 52,877,517 54,982,618 Personnel Benefits 17,317,750 16,132,359 16,044,263 16,603,108 17,267,232 17,957,921 18,676,239 Supplies,Equipment&Resale 2,341,075 2,838,264 2,217,500 2,217,500 2,284,006 2,352,547 2,423,123 Services&Charges 10,222,270 12,239,461 14,391,139 14,550,781 14,987,305 15,436,924 15,900,032 Custodial Outlays - - - - - - - Capital Outlays 586,131 326,390 46,000 46,000 47,380 48,801 50,265 Debt Service 423,897 377,509 154,639 - - - - Transfers 3,207,562 16,432,476 15,602,559 15.302,659 15,302,659 15,302,659 15,302,659 Total Expenditures 78,817,164 95,926,928 95,435,667 97,608,286 100,732,348 103,976,369 107,344,935 1/2%Carryover - 479,635 477,178 488,041 503,662 519,882 536,725 Estimated End Balance $18,090,902 $15,594,568 $15,245,714 $14,326,971 $13,286,361 $12,740,743 $12,040,090 12%Policy Reserve Amount $ 9,458,060 $ 11,453,675 $11,395,019 $ 11,654,429 $ 12,087,445 $ 12,414,778 $12,816,985 Net Fund Balance 23.0% 16.3% 16.1% 14.8% 13.5% 12.3% 11.3% 102 J ', s�-ci r.„4'y� � Preliminary 2027/2028 General Fund „, . .... ,,,,,,o,,,,,,:......,,,, .,,,,,,,,,,,,,,,,,, Revenues Expenses 2027 %of 2028 %of Projected Total Projected Total 2027 %of 2028 %of Sales Tax $29,844,000 31.5% $30,849,000 32.1% Projected Total Projected Total Utility Tax 27,489,738 29.1% 28,141,094 29.3% Salaries&Wages $46,579,593 48.8% $48,888,237 50.1% Property Tax 22,900,601 24.2% 23,358,613 24.3% Personnel Benefits 16,044,263 16.8% 16,603,108 17.0% Charges for Services 1,400,800 1.5% 1,401,650 1.5% 0 Intergovernmental Revenues 2,920,986 3.1% 2,444,918 2.5% Supplies,Equip&Resale 2,217,501 2.3% 2,217,501 2.3/0 Other Taxes&Assessments 1,388,000 1.5% 1,388,000 1.4% Services&Charges 14,791,139 15.5% 14,550,781 14.9% Licenses and Permits 2,134,550 2.3% 2,114,550 2.2% Capital Outlays 46,000 0.0% 46,000 0.0% Operating Contributions&Misc. 1,660,550 1.8% 1,672,550 1.7% Debt Service 154,633 0.2% - 0.0% Transfers 64,036 0.1% 32,010 0.0% Transfers 15,602,539 16.3% 15,302,659 15.7% Investment Interest/Amortization 4,804,374 5.1% 4,801,115 5.0% $94,607,635 $96,203,501 $95,435,667 $97,608,286 103 y y �,b j� 1- Three-Legged Stool of Revenue l.. 4,,,.,,............,c.),. -.;11 aPVNwTEV y 0 .011 p.. DTI r ..< .•G 12. a � 104 ._,---1,'F.. .Y�,,,' Where Do Your Property Tax Dollars Go? _ • p Y °„,v' I'% Taxing entities for the properties in the Yakima School District �''..�,,,�� ,,,. City of Yakima tax code area 331, 333, 334, 335, and 349 RP(`R A..„ \ 4 P j i ,,,; ,Ez M I) N1 .7 N A la K.y DI . i W OC 11 11 M'•' t' ,,'a u , .:/ )er �;�,,,""`�r,4' I ,' TI-I E� I_r T t�))Si 0 �/ � Lri x ,C,,, - `p THIS NOTE IS'LEGAL TENDER ,e I f, -' 1l FOR ALL DEBTS,Pl:IBLIC AND PRIVATE `i \r ' C \ % . B 03,> 42754 F � � ` vc j`. WA:iHINGTON D.C. ]i:3 � � ,� 2 2 � , 2 f a� p• pQ[ � .I1,511): T B 035427.>4 F i A B sa IR __ 2 2 ,� � �'1 \ A y. �44Z f A h gJD 7ka {y J 3% 3% 11% 20% 26% 36% County Yakima Yakima City of State Yakima EMS Valley County Yakima School Levy School Regional 1 &2 Library 100% OF YOUR TAX DOLLAR 105 . Ji ; sw I s4 vA„4.,:,:,,-;.••.......•••-cs..:� Property T Levy R y., : 7 (RP(RAT E9 TE9 k.9 City of Yakima 4.000 3.500 - 3.000 2.500 2.000 — IIIIIIII - I ii 1.500 iiiiiii 1111111 I, 0.500 1111111 0.500 0.000 NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O 0 0 0 1- 1- 1- 1- 1- 1- 1- 1- 1- 1- NJ NJ NJ NJ NJ NJ NJ Ul Ol V 00 (0 0 I-` NJ W A Ul Ol V 00 l0 0 I-` NJ W A Ul Ol •City of Yakima Levy Rate ■City of Yakima Bonds Levy Rate ;: ... .. Where Does Your Sales Tax Dollars Go? l,4,, •i,�'• •sib _=� CITY OF YAKIMA I SALES TAX. DISTRIBUTION On a $100 taxable purchase $0.85 DIRECTLY TO YAI<IMA'S GENERAL $8.60 TOTAL SALES TAX UD HOW THE$8.60 IS ALLOCATED $6.50 $0.8 I State $6.50 Yakima County' $0.45 City General Fund $0.85 City Transit $0.30 City Transportation (TBD) $0.10 Shared Criminal Justice2 $0.40 'County:$0.10 mental health+$0.20 public safety radio+$0.15 share of general sales tax. 2 Criminal justice tax revenue is shared by allocation formulas.The City receives a portion;it is not all retained by the City. 107 rYam" .,. �rl UtilityTaxes — 3 Year Com arison 4,y�:� ,`r'��= General Fund Only 4RPnRATEU =� ._ 2024 2025 2026 2027 2028 Actual Actual YE Est Projected Projected Water Utility 2,368,774 2,580,738 2,893,239 3,585,175 3,745,882 Wastewater Utility 4,838,313 5,160,118 5,903,026 6,460,929 6,644,875 Refuse Utility 1,530,647 1,584,825 1,904,180 2,018,430 2,139,536 Stormwater Utility 633,218 713,481 864,806 995,179 1,064,842 Electric Utility 6,347,121 7,996,968 8,175,173 8,256,000 8,340,000 Private Water Utility 1,240,099 1,242,955 1,418,183 1,461,000 1,477,000 Gas Utility 1,854,907 2,056,367 2,056,000 1,694,000 1,712,000 Private Garbage Utility 1,231,461 1,270,432 1,265,400 1,303,362 1,342,463 Cable TV Utility 509,913 445,538 421,710 425,663 426,496 Cellular Utility 264,570 250,423 234,564 220,000 208,000 Telephone Utility 515,796 559,375 544,753 534,000 512,000 Brokered Natural Gas Util 153,475 168,518 175,629 207,000 207,000 $21,488,293.15 $24,029,737.49 $25,856,662.34 $27,160,738.24 $27,820,094.48 108 ,-... Y` �": • 1':4 General Fund Tax Revenue Trends ''''..,,;<< %__ Sales, utility and property taxes .................... 2025 actual through 2028 budget 30 25 20 64 0 15_ I r is s- 5 0 2025 2026 2027 2028 -6-Sales tax Utility tax -0-Property tax 2025:Actual • 2026:Year-end estimate • 2027-2025:Budget Mote 7&2S prtpviy taw is reported ax$8.4111.1 in the General fund forecast,compared with 524.70.1 citywide.Thix creates a swim break it should not be inlepreted ax typical annual growth. 5oum Cty et Yakima 2027-2C2E Pm irrinarr 3ur15.,uiwc,l suns i Scar Farcira,p.?. 109 ,J: 4,c,.., .... ...4--,„ Investment Interest and ,,,... . 1...,,, 4'''..*•NigIgiVyl Government Accountin $8,000,000.00 $6,000,000.00 $4,000,000.00 $2,000,000$0 . . jill, ig AP $(2,000,000.00) oa\y Ja\cy Ja\y �a\h Ja\y Ja\y �a\cy Ja\y awe cad �a.6 �v- oiP. OP. N. 'LPG '3P. RP. yQ- <.`'� e\`�� `�` c O,' O,' Off' Ol' Off' Off' Ol' Ol' J� Qc Q� 'L 'L 'L 'L 'L 'L 'L 'L ti01� ti61, ,L61, GASB Statement 31 -Investments Impact on financial results What it requires: Market values are adjusted at year-end Investments are reported at fair value Unrealized s>,ins/losses are recorded in financials. Annual changes in value are recorded as: This creates significant fluctuations in December. Investment income( / ) 110 Page 28 J" -iAllialft:.!...\, '_; 2027 GENERAL FUND 4'.�`. I'�4 BY CATEGORY 'ORATV) EXPENDITURES 2027 General Fund Where We Spend — General Administration $6,857,159 Expenditure Categories Public Safety 7.2% $95,435,667 $673.2°/382 i,� Parks& 3.2% . Recreation -.441111111 , $5,362,672 5.6% Streets $5,663,867 5.9% Law&Justice $7,670,587 8.0% 116 111 Page 29 J �� . 1. y % y''''.,;:� �/m:,= 2028 GENERAL FUND �.,, R'(RATED ,9 EXPENDITURES BY CATEGORY 2028 General Fund Where We Spend — General Expenditure Categories Ad$6,75851 n $97,608,286Public Safety Parks& $71,823,182 73.6% 4ajuilliglik,__ Recreation $5,427,887 --,N444, 5.6% Streets '-'‘W $5,743,772 5.9% Law&Justice $7,861,595 i;, 8.1% 112 Page 30 -� • � General Fund RP R'' �e = EndingFund Balance vs PolicyReserve (Fund 001 Only- With Transfers) FUND BALANCE VS POLICY RESERVE AMOUNT WITH CARRYOVER 20,000,000 15,000,000 10,000,000 5,000,000 (Fund 001 Only-With Transfers) With ARPA Revenue Replacement 530,000,000 2025 2026 2027 S20,000,000 • • • • • $10,000,000 IiiiiiimmimmEstimated End Balance 12%Policy ,510 ,000,000) 1520,000,000) 1530,000,0001 M0,000,0001 (S50,000,0(01 2023 2024 2025 2026 2027 2028 2[ Actual YEN( Budget Budget Projected Projected Proj,113 -•-GF End Balance Policy Roy And-16.7% ._ y Policy Recommendation • Update the Reserve policy for the General Fund to a minimum reserve of 15% • Include in the Reserve policy that if the reserves fall below the minimum at any time in the future, the City is required to increase the reserves to meet the minimum reserve level within the next two year budget cycle. 114 Page 32 ue: :? . Financial Resilience and Reserves • Policy that defines reserve levels and when to use reserves and how to replenish if used • Standard & Poor's Rating System — 20% of weighting factor to "reserves and liquidity" — City's last rating was in 2019 and a reserve level below 15% would likely reduce our credit rating. • Reduction to the reserve level in 2024 was due to an emergency and should not have been a permanent change. 115 Page 33 --I-- Y•am" „,..,,, \ .'‘.....y Preliminary City-Wide Budget 4R•• .••.,,,,,,,_____= PnR; ,,,,,,,,,,, Revenues Expenditures 2027 %of 2028 %of Citywide Projected Total Projected Total 2027 %of 2028 %of Sales Tax $43,740,277 13.6% $44,828,277 14.8% Projected Total Projected Total Utility Tax $28,890,944 9.0% $29,577,127 9.8% Salaries&Wages $ 82,323,489 24.0% $ 85,967,756 27.1% Property Tax $25,590,438 8.0% $26,102,247 8.6% Peisonnel Benefits 44,528,232 13.0% 45,612,199 14.4% Charges for Services $74,737,643 23.2% $76,808,276 25.3% Supplies,Equip&Resale 11,296,77'9 3.3% 11,553,739 3.6% Intergovernmental Revenues $51,284,769 15.9% $29,270,354 9.7% Services&Charges 92,177,033 26.9% 92,882,047 29.3% Other Taxes&Assessments $6,001,000 1.9% $6,035,000 2.0% Capital Outlays 74,244,976 21.6% 45,199,365 14.2% Licenses and Permits $3,706,120 1.2% $3,724,870 1.2% Debt Service 5,860,151 1.7% 4,930,584 1.6% Operating Contributions& Misc. $49,880,381 15.5% $50,782,152 16.7% Transfers 32,678,924 9.5% 31,124,462 9.8% Transfers $5,058,294 1.6% $5,039,105 1.7% $343;109;555 $317,270,152 Investment Interest/Amortization $32,678,924 10.2% $31,124,462 10.3% TOTAL REVENUE $321,568,790 $303,291,871 Represents Expenditures Out of Enterprise Reserves For Capital Projects 116 Page 34 J s�: i41 ._.,:Ji.,..,______..,,,,,,s..,‘,1,,„,..;:„ \ y 4sy�'.� •,�2 2027/2028 Budget ..,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Council : ■ Fund Washington Fruit Center or Fund Franklin Pool? ■ Franklin Pool: • Open 90 Days per year • Expenses $109,080 Revenue $16,722 Net Cost $92,358 • Attendance 3,273 Net Cost per $28.21 • Washington Fruit: • Open 253 Days • Expenses $227,332 Revenue $32,894 Net Cost $194,438 • Attendance 18,975 YTD Net Cost per$10.25 16 • Ad Valorem Property Tax — 1% Increase - $220,000 estimate 117 Page 35 2027/2028 Unbudgeted Needs • Police Equipment Replacement ($250K) $ 1,150,000 • Fire Equipment Replacement ($240K) $ 1,000,000 • Bond Payment for Facility Upgrades $ 750,000 • Police Officers $ 2,700,000 • Streets & Sidewalks $ 545,000 • Economic Development $ 200,000 • Parks Capital $ 1,800,000 • Police Equipment/Repair $ 1,180,000 h. • Legal $ 110,000 • And Much More 118 Page 36 41114 4- 7t • In Revenue Options RPR�.." �9 _ • Public Safety Sales Tax 1/10th of 1% • Transportation Benefit District Sales Tax • Fire District • EMS Levy • Parks District • Levy Lid Lift Ilir 119 Page 37 y 4sy�.�' •,�2 2027/2028 Budget ,,,,,,,,,,,,,,,,,,,,,,,, We have a Balanced Budget ! Path forward or included in the 2027/2028 Budget • Lions Pool • Harman Center • WA Fruit Center • Park Bathrooms • Fire Station 92 • Other Items 120 Page 38 ....., ._ Jr •...,....., • y l RP`.R�.." �9 _ CI u e st 1 o n s • Ili 121